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Automation software company UiPath (NYSE: PATH)
will be reporting earnings tomorrow after the bell. Here’s what investors should know.
UiPath met analysts’ revenue expectations last quarter, reporting revenues of $423.6 million, up 4.5% year on year. It was a slower quarter for the company, with a significant miss of analysts’ billings estimates and full-year guidance of slowing revenue growth.
This quarter, analysts are expecting UiPath’s revenue to be flat year on year at $332 million, slowing from the 15.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.10 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. UiPath has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 3.2% on average.
Looking at UiPath’s peers in the automation software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Pegasystems delivered year-on-year revenue growth of 44.1%, beating analysts’ expectations by 33.1%, and Microsoft reported revenues up 13.3%, topping estimates by 2.3%. Pegasystems traded up 28.8% following the results while Microsoft was also up 8.4%.
There has been positive sentiment among investors in the automation software segment, with share prices up 8.5% on average over the last month. UiPath is up 7.1% during the same time and is heading into earnings with an average analyst price target of $12.13 (compared to the current share price of $12.66).